Music

Soundcloud just made a licensing deal with 20,000 independent labels

by Richard Howard

While they may still be wrangling with the majors, it’s full steam ahead for Soundcloud’s relationship with the little guys: a new deal with global digital rights agency Merlin has effectively resulted in a licensing deal with 20,000 independent labels and distributors.

While the majority of these is likely to consist of tiny DIY operations, Merlin also counts among its members some of the world’s largest independents including Beggars Group (with labels such as Rough Trade and artists such as Radiohead) and Epitaph. In a press release, Merlin noted that their roster “represents the most valuable set of rights outside of those controlled by the three major labels, commanding in excess of 10% of the global digital market.”

While the respective CEO quotes were the expected “we love independents” and “independents love Soundcloud,” the important thing is that independent artists can now start receiving royalties for those tunes they’ll be putting up on Soundcloud anyway to gain exposure. And considering the somewhat more human relationship independent labels have with their artists, indie artists may actually see a fair share of the revenue – unlike their major label brethren.